INFLATION: A report showed U.S. consumer prices climbed at a slightly faster pace than economists expected in January while a separate report on retail sales showed they were unchanged in December and slipped last month. Surprisingly, markets shrugged off the figures, suggesting investors are now much less concerned about inflation than they were earlier this month, when an upbeat wage growth report sent markets reeling over fears the Federal Reserve might start raising interest rates faster than anticipated earlier.

ANALYST TAKEAWAY: "Having just gone through the roller coaster of equity sell-off induced by bond yield rises, I am frankly at a loss to explain what is now happening now," said Rob Carnell, chief Asia economist at ING. "I can only assume that we are in a temporary lull before the turmoil returns," he added, noting that trading volumes have been lower in recent days, likely because traders are winding down for the Lunar New Year holiday in Asia and President's Day holiday in the U.S. on Monday.

CURRENCIES: The dollar was at a 15-month low, weakening to 106.64 yen from 106.94 yen in late trading Wednesday. The euro strengthened to $1.2452 from $1.2452.

ENERGY: U.S. benchmark crude oil rose 38 cents to $60.98 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.41, or 2.4 percent, to settle at $60.60 a barrel on Wednesday. Brent crude, used to price international oils, gained 35 cents to $64.71 a barrel in London.